Deal includes job offers for key staff, layoffs for others
Planet Home Lending is in talks to buy the retail mortgage lending division of employee-owned company Axia Home Loans.
The deal, confirmed by multiple sources familiar with the matter, will see the majority of Axia’s retail sales and operations staff offered positions at Planet Home Lending. However, the transition will result in layoffs for some Axia employees, with some employees’ last day being Friday, August 2.
Axia employees were informed of the deal during a one-hour call with leadership on Wednesday afternoon, which included executives from both companies.
The news came unexpectedly to many at Axia, who had not anticipated such changes given the company’s employee stock ownership plan (ESOP) structure.
“I just felt that it being an ESOP, I wouldn’t be blindsided by layoffs,” one employee who requested anonymity told Housingwire.
While Axia has faced financial challenges, multiple sources described the company as having a strong culture and a solid financial position. Vested employees will receive their payouts once the deal is finalized.
Planet Home Lending, known for its strength in correspondent lending, has been expanding its retail footprint in recent months. The mortgage lender and servicer hired industry veteran Doug Long, senior vice president and divisional sales manager, to lead this effort.
Planet has also acquired assets from other lenders, including the majority of Platinum Home Mortgage Corp.’s origination staff and branches last year.
Read next: Planet Home Lending opens branch with focus on specialty loans
In the first half of 2024, Planet Home Lending was ranked as the 22nd-largest mortgage lender in the United States, with $8.38 billion in volume, according to Inside Mortgage Finance. By comparison, Axia Home Loans originated around $300 million during the same period, as reported by Modex.
Neither Planet Home Lending nor Axia Home Loans responded to requests for comment.
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